CONSUMER PERCEPTION TOWARDS SHOPPING THROUGH DEBIT CARDS: A CASE STUDY WITH REFERENCE TO BELTANGADY TALUK IN KARNATAKA

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1 International Journal of Marketing & Financial Management, Volume 5, Issue 5, May2017, pp 6671 ISSN: (Online) ISSN: (Print) Impact Factor: 3.43 DOI: /zenodo DOI URL: Cite this paper as : Chandravathi (2017), Consumer Perception towards Shopping through debit cards: a Case study with reference to Beltangady Taluk in Karnataka, International Journal of Marketing & Financial Management, ISSN: (online) ISSN: (print), Volume 5,(Issue 5,May2017), pp 6671, DOI URL: CONSUMER PERCEPTION TOWARDS SHOPPING THROUGH DEBIT CARDS: A CASE STUDY WITH REFERENCE TO BELTANGADY TALUK IN KARNATAKA Dr. Chandravathi Coordinator, Dept of PG studies in Commerce, GFGC Belthangady,D.K.District, Karnataka State ABSTRACT This research aims to study the behaviour of using debit cards and the quality perceiving on using debit cards of the consumer in Mangalore district. Questionnaire were used for data collection by purposive sampling and equally distributed to 50 consumers who held at least one debit card and used it more than three times before the study. The collected data was analysed using the descriptive statistics; frequency and percentage, and the inferential statistics; ANOVA at the.05 level of statistics significance. This research found that the demographic characters of the consumers were female, between 2150 years old, and held bachelor degree. Key words: consumer, shopping Cards, ANOVA, behaviour Introduction The progress of information technology, communication, and the Internet system has forced the financial and banking system to be globalized. It is not convenient any more to bring much money for buying products and services. Banks play an important role in managing money transaction. They have created many new financial tools, such as ATM cards and credit cards to increase the convenience and ease of the economic system. These financial innovations support transactions and stimulate consumption. At the same time, card issuers make income from the fees (Manager, 2005). Besides providing more convenience and safety than cash, consumers can use their debit cards to withdraw cash at the ATM. Increasing debit card use reduces the Thai government s expenses for producing banknotes. Even though debit cards look like credit cards or ATM cards, there are differences in their function. Credit cards mean buy firstpay later while debit cards mean buy nowpay now. When using debit card, it will directly connect to your account and will credit the amount from your account to the vendor once you buy a product. In modern days online shopping through debit cards plays an important role, the present prime minister of India Narendra Modi demonised 500 & 1000 notes, which created scarcity in currency notes, which contributed great push to the online/mobile shopping/shopping through debit card/ credit cards. The government of India offering discounts on card payments. It is an easy form of shopping, no questions of carrying currency notes. Objectives of study a) To understand perception towards shopping through debit cards. b) To know the expectations of the consumers towards shopping through debit cards. Review of literature Today s world understanding consumer behaviour and knowing customers are never simple because customers may say one thing but do another. The study of consumer behaviour enables marketers to understand and predict consumer behaviour in the marketplace. It focuses on how individuals make decisions to spend their available resources (time, money, effort) on consumptionrelated items that includes what they buy, why they Contact Us : info@arseam.com ; submit paper : editor@arseam.com download full paper : 66

2 Chandravathi (2017), Consumer Perception towards Shopping through debit cards: a Case study with reference to Beltangady Taluk in Karnataka" buy it, when they buy it, where they buy it, how often they buy it, and how often they use it (Schiffman & Kanuk, 2000). A market survey of debit card using in Thailand found that debit card holders increased 27 percent to 12 million cards at the end of March, However only 4.5 billion baht was spent using debit cards, 20 percent increase (Weekly Manager, 1996). While 95 percent of Thai people used debit card for withdrawing the money via ATM, only 5 percent used debit card for purchasing. The main reasons are the inadequate advantage consumers perceive for using their debit cards and distrust in online payment system. To change consumer behaviour, banks must actively market the advantages of debit card use (BrandAge, 1995). With the increasing of the number of debit card holders but only small proportion using the card for purchasing including new ways in payment such as mobile payment, commercial bank must be focus on making consumers understand how to use debit card. Much research has been concentrated on shopping through debit card in the world. However, there is still a need for closer examination on the online shopping buying/shopping through debit cards behaviour in developing countries like India. Shore (1998) and Stiglitz (1998) reported that implementation of information system depends on specific social, cultural, economic, legal and political context, which may differ significantly from one country to another country. While both established and new, large and small scale businesses are now using the Internet as a medium of sales of their products and services (for example Dell computer, Amazon.com, in the world and jobstreet.com, rediff.com). Still there is a huge research gap that exists not only between countries, especially between developed and developing countries, which may differ significantly between countries (Stieglitz, 1998; Shore, 1998; Spanos et al., 2002) that limit the generalization of research results from developed countries to developing country contexts (Dewan and Kraemer, 2000; Clarke, 2001). Dewan and Kraemer (2000) and Clarke (2001) argued in their study that findings from developed countries are not directly transferable to developing countries. Research Findings Methodology This study was descriptive and analytical in nature. The study mainly depended upon the primary data to develop this article. However, same secondary sources of data were collected for the purpose of gathering background information supporting the study. Relevant primary data were collected using the combination quantitative (sample survey) and qualitative (interview) methods. Primary data were collected through questionnaire method. A Questionnaire was administered to 50 residents of the study area. Appropriate and relevant statistical tools and techniques will be used such as Descriptive Statistics (Mean and S.D), Analysis of Variance (ANOVA). Tools used for the study is shown below Table 1 Criteria used for the Research Study Class Perception of employee Strongly disagree Disagree Agree Strongly agree Source: Likers scale Research findings 1. through debit cards helps them 0% of the respondents strongly disagree, 4% of them disagree, 52% of them agree, 44% of them strongly agree debit cards help them. The percentage means 85 (Mean and SD ± ) shows debit cards helps them as 85% it falls in the category of 76% to 100% Contact Us : info@arseam.com ; submit paper : editor@arseam.com download full paper : 67

3 International Journal of Marketing & Financial Management, Volume 5, Issue 5, May2017, pp 6671 ISSN: (Online) ISSN: (Print) Table Exhibits Consumer perception towards shopping through debit cards Component through debit cards help them Strongly disagree Disagree Agree Strongly agree (52%) (44%) (4%) Mean and Percentage SD Mean ± through debit cards creates cashless society through debit cards contribute for prompt tax payment by the business man through debit cards curbs black money that payment through debit cards substitute for cash payment through debit cards become not threat for customers through debit cards is better than cash payment through debit cards become popular after demonetization that special offer from the government for shopping through debit cards is good through debit cards contribute for digital economy Source: Survey data 1 1 (2%) 1 (2%) 4 (8%) (2%) 6 (12%) 10 (20%) 2 (4%) 5 (10%) 3 (6%) 39 (78%) 36 (72%) 33 (66%) 32 (64%) 30 (60%) 30 (60%) 31 (62%) 27 (54%) 26 (52%) 7 (14%) 13 (26%) 10 (20%) 18 (36%) 10 (20%) 18 (36%) 19 (38%) 17 (34%) 21 (42%) 3.060± ± ± ± ± ± ± ± ± through debit cards creates cashless society 0% of the respondents strongly disagree, 8% of them disagree, 78% of them agree, 14% of them strongly agree debit cards creates cashless society with (Mean and SD 3.060± ). The percentage Mean 76.5 shows debit cards creates cashless society as 76.5% it falls in the category of 76% to 100%. 3 through debit cards contribute for prompt tax payment by the business man 0% of the respondents strongly disagree, 2% of them disagree, 72% of them agree, 26% of them strongly agree thatthrough debit cards contribute for prompt tax payment by the business man with (Mean and SD Contact Us : info@arseam.com ; submit paper : editor@arseam.com download full paper : 68

4 Chandravathi (2017), Consumer Perception towards Shopping through debit cards: a Case study with reference to Beltangady Taluk in Karnataka" 3.220± ). The percentage Mean 80.5, which shows debit cards contribute for prompt tax payment by the business man as 80.5% it falls in the category of 76% to 100%. 4 through debit cards curbs black money 2% of the respondents strongly disagree,12% of them disagree, 66% of them agree, 20% of them strongly agree that of through debit cards curbs black money. The percentage mean 76% (Mean and SD ±0.637.), shows that through debit cards curbs black money as 76% it falls in the category of 76% to 100%. 5 that payment through debit cards substitute for cash payment 0% of the respondents strongly disagree, 0% of them disagree, 64% of them agree, 36% of them strongly agree that payment through debit cards substitute for cash payment with Mean and SD ± The percentage Mean 84 shows debit cards becomes not threat for customers as 84% as it falls in the category of 76% to 100%. 6 through debit cards become not threat for customers 0%of the respondents strongly disagree, 20% of them disagree, 60% of the respondent agrees, 20% of them strongly agree debit cards become not threat for customers. The percentage mean 75(Mean and SD 3.000± ), shows debit cards become not threat for customersas 75% it falls in the category of 75% to 100%. 7 through debit cards is better than cash payment 0% of the respondents strongly disagree 4% of them disagree, 60% of them agree, 36% of them strongly agree debit cards is better than cash payment with Mean and SD ± percentage Mean 83, which shows debit cards is better than cash payment as 83% falls in the category of 75% to 100%. 8 through debit cards become popular after demonetization 0%of the respondents strongly disagree, 0% of them disagree, 62% of them agree, 38% of them strongly agree debit cards become popular after demonetization with Mean and SD (3.38± )percentage Mean 84.5, which shows debit cards become popular after demonetizationas 84.5% falls in the category of 76% to 100%. 9 that special offer from the government for shopping through debit cards is good 2% of the respondents strongly disagree, 10% of them disagree, 54% of them agree, 34% of them strongly agree that special offer from the government for shopping through debit cards is good with Mean and SD percentage ± Mean 80, which shows that special offer from the government for shopping through debit cards is good as 80% falls in the category of 76% to 100%. 10 through debit cards contribute for digital economy 0% of the respondents strongly disagree, 6% of them disagree, 52% of them agree, 42% of them strongly agree 2800±0. debit cards contribute for digital economy with Mean and SD 3.36± percentage Mean 84, which shows thatshopping through debit cards contribute for digital economyas 84% falls in the category of 76% to 100%. Contact Us : info@arseam.com ; submit paper : editor@arseam.com download full paper : 69

5 International Journal of Marketing & Financial Management, Volume 5, Issue 5, May2017, pp 6671 ISSN: (Online) ISSN: (Print) that shopping through debit cards help you debit cards creates cashless society debit cards contribute for prompt tax payment by the business man that shopping through debit cards curbs black money Respondents opines that payment through debit cards substitute for cash payment debit cards not become threat for customer debit cards is better than cash payment debit cards become popular after demonization that offers from the government for shopping through debit cards is good ANOVA Sum of Squares df Mean Square F Sig Within Total Within Total Within Total Within Total Within Total Within Total Within Total Within Total Within Total Analysis of Variance (ANOVA) shows that there is a significant difference (p<0.001, HS) in perception towards Nine Components of using debit cards contribute for digital economy. Conclusion and recommendation As per the research finding there is significance relation between various component of using debit cards, we found that debit cards serves as a substitute primarily for cash & cheques. The probability of using Contact Us : info@arseam.com ; submit paper : editor@arseam.com download full paper : 70

6 Chandravathi (2017), Consumer Perception towards Shopping through debit cards: a Case study with reference to Beltangady Taluk in Karnataka" debit cards is decreasing with age and increasing with education and women use debit cards at a higher rate than men. The frequency of debit card use is lower for older respondents and higher for households and children s. The aim of this research is to study of using debit card and the quality perceiving on using debit card of the consumer. The research found that the demographic characters of the consumers were female, between 2130 years old, and held bachelor degree. Twothird of consumers was students, government and company officers. By studying their demographic, this result can lead the issuing bank to pay the attention or define strategy to the right target group and expand the market to the new target group such as male. The following lines of recommendation can be considered to increase the frequency of using debit cards: It is the duty of the government to motivate each and every citizen of the country by offering attractive package. Alertness programmes of using debit card should be organised. It is the duty of government to improve banker customer relationship Government should impose strict rules on bankers to support government policies. References [1] R. J. Anderson. (2008)Security Engineering: A guide to Building Dependable Distributed Systems. Wiley [2] Au, Y.A & R.J, Kauffman. (2007). The economics of mobile payments; Understanding stakeholder issues for an emerging financial technology application. Electronic Commerce research and Pllication, Volume 7, issue 2, (pp ) [3] D. Balaban. (2010). Sony Faces and Uncertain Market forltsfelica Technology. From NFC Times.Retrieved from moneyjaqpanfelicachips [4] E.V Buskirt.(2010). Why your Phone Can t Really Replace Your Credit Card. Retrieved from wired.com [5] S. Calrk. AT & T, Verrizon, (2010). TMobile confirm Isis mobile payments joint venture, Retrieved from Contact Us : info@arseam.com ; submit paper : editor@arseam.com download full paper : 71